Latest Ratios: P/E Ratio 10.5x · EV/EBITDA 12.6x · ROE 13.6%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $992M | $782M | $718M | $647M | $531M | $560M | $442M | $598M | $469M | $583M | $615M |
| Enterprise Value | $1.3B | $1.1B | $973M | $1.4B | $1.1B | $278M | $376M | $868M | $894M | $767M | $783M |
| P/E Ratio → | 10.51 | 8.81 | 9.02 | 7.87 | 8.70 | 9.49 | 10.03 | 12.12 | 11.17 | 18.62 | 19.23 |
| P/S Ratio | 2.67 | 2.10 | 1.98 | 2.13 | 2.48 | 2.82 | 2.28 | 3.23 | 2.91 | 4.03 | 4.41 |
| P/B Ratio | 1.29 | 1.08 | 1.23 | 1.24 | 1.20 | 1.23 | 1.00 | 1.44 | 1.25 | 1.59 | 1.80 |
| P/FCF | 88.48 | 69.79 | 7.75 | 10.79 | 4.54 | 9.50 | 15.30 | 19.13 | 8.47 | 17.54 | 18.88 |
| P/OCF | 55.18 | 43.53 | 7.10 | 9.71 | 4.43 | 8.67 | 11.67 | 13.37 | 7.60 | 15.08 | 17.77 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.05 | 2.69 | 4.46 | 5.02 | 1.40 | 1.94 | 4.69 | 5.55 | 5.31 | 5.61 |
| EV / EBITDA | 12.62 | 10.66 | 8.94 | 11.84 | 12.11 | 3.18 | 5.85 | 12.40 | 14.51 | 13.60 | 13.87 |
| EV / EBIT | 13.17 | 11.12 | 9.90 | 13.17 | 14.18 | 3.77 | 6.85 | 14.36 | 17.24 | 16.65 | 16.70 |
| EV / FCF | — | 101.24 | 10.51 | 22.57 | 9.20 | 4.72 | 13.01 | 27.76 | 16.13 | 23.08 | 24.03 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 64.0% | 64.0% | 61.9% | 71.8% | 85.9% | 92.4% | 79.3% | 80.8% | 85.7% | 87.0% | 88.9% |
| Operating Margin | 27.5% | 27.5% | 27.2% | 33.8% | 35.4% | 37.1% | 28.3% | 32.6% | 32.2% | 31.9% | 33.6% |
| Net Profit Margin | 23.9% | 23.9% | 22.0% | 27.1% | 28.5% | 29.7% | 22.8% | 26.7% | 26.1% | 21.6% | 22.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.6% | 13.6% | 14.4% | 17.1% | 13.6% | 13.1% | 10.3% | 12.5% | 11.3% | 8.9% | 9.5% |
| ROA | 1.4% | 1.4% | 1.4% | 1.6% | 1.2% | 1.2% | 1.1% | 1.4% | 1.3% | 1.0% | 1.1% |
| ROIC | 5.5% | 5.5% | 5.7% | 6.3% | 5.1% | 5.1% | 4.3% | 5.1% | 4.8% | 4.8% | 5.4% |
| ROCE | 8.0% | 8.0% | 8.0% | 9.7% | 8.2% | 8.0% | 6.5% | 7.6% | 7.4% | 7.7% | 9.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.14 | 1.14 | 1.11 | 1.60 | 1.45 | 1.52 | 1.27 | 1.21 | 1.33 | 1.05 | 1.03 |
| Debt / EBITDA | 7.75 | 7.75 | 5.96 | 7.32 | 7.21 | 7.93 | 8.71 | 7.19 | 8.11 | 6.81 | 6.23 |
| Net Debt / Equity | — | 0.49 | 0.44 | 1.35 | 1.23 | -0.62 | -0.15 | 0.65 | 1.13 | 0.50 | 0.49 |
| Net Debt / EBITDA | 3.31 | 3.31 | 2.35 | 6.18 | 6.12 | -3.22 | -1.03 | 3.85 | 6.89 | 3.26 | 2.97 |
| Debt / FCF | — | 31.45 | 2.76 | 11.78 | 4.65 | -4.78 | -2.29 | 8.63 | 7.66 | 5.54 | 5.16 |
| Interest Coverage | 0.79 | 0.79 | 0.75 | 1.32 | 3.21 | 3.79 | 2.10 | 1.79 | 2.37 | 2.92 | 3.72 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.29 | 0.29 | 0.23 | 0.18 | 0.18 | 0.36 | 0.29 | 0.20 | 0.16 | 0.20 | 0.20 |
| Quick Ratio | 0.29 | 0.29 | 0.23 | 0.18 | 0.18 | 0.36 | 0.29 | 0.20 | 0.16 | 0.20 | 0.20 |
| Cash Ratio | 0.09 | 0.09 | 0.08 | 0.03 | 0.02 | 0.23 | 0.18 | 0.08 | 0.03 | 0.08 | 0.07 |
| Asset Turnover | — | 0.05 | 0.06 | 0.06 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.05 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.6% | 3.1% | 3.1% | 3.2% | 3.7% | 3.3% | 4.1% | 2.9% | 5.9% | 2.1% | 3.0% |
| Payout Ratio | 27.0% | 27.0% | 28.2% | 25.5% | 32.1% | 31.4% | 40.6% | 34.6% | 65.4% | 38.5% | 58.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.5% | 11.4% | 11.1% | 12.7% | 11.5% | 10.5% | 10.0% | 8.3% | 9.0% | 5.4% | 5.2% |
| FCF Yield | 1.1% | 1.4% | 12.9% | 9.3% | 22.0% | 10.5% | 6.5% | 5.2% | 11.8% | 5.7% | 5.3% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 3.8% | 1.5% | 1.2% | 1.3% | 0.0% | 0.6% |
| Total Shareholder Yield | 2.6% | 3.1% | 3.1% | 3.2% | 3.7% | 7.1% | 5.5% | 4.1% | 7.1% | 2.1% | 3.7% |
| Shares Outstanding | — | $16M | $16M | $16M | $16M | $16M | $16M | $16M | $17M | $16M | $16M |
Commercial Real Estate Concentration
According to recent market data, MBWM trades at a P/B of 1.28, which suggests that investors are pricing the bank at a premium relative to its historical book value, despite the persistent 0.8% NIM that has characterized the bank's performance over the last ten quarters.
The current P/B multiple appears to reflect market confidence in the bank's localized commercial lending franchise rather than its immediate earnings yield. Investors should monitor whether this premium is sustainable if the efficiency ratio continues to deteriorate from the 33.6% low observed in 2024Q2 to the 43.0% level reported in 2026Q1.
Based on quarterly financial disclosures, the bank's ROE has remained constrained within a narrow 3.1% to 4.1% range over the past ten quarters, indicating that the bank's profitability is currently struggling to generate meaningful returns on equity despite the expansion of the total asset base.
The DuPont decomposition suggests that the bank's profitability is heavily reliant on asset utilization, yet the stagnant NIM prevents a meaningful expansion in ROE. The recent shift toward a net recovery position in provisions may provide a temporary boost to earnings, but this does not address the underlying structural challenge of margin compression.
As reported in financial statements, the efficiency ratio has trended upward to 43.0% in 2026Q1, which may indicate that the bank is facing increasing difficulty in maintaining operating leverage while the net interest margin remains anchored at a historically low 0.8% level.
The lack of NIM expansion despite a growing asset base suggests that funding costs are rising in lockstep with asset yields, effectively neutralizing the bank's pricing power. This trend warrants further investigation into whether the bank's commercial loan renewals are being priced aggressively enough to offset the rising cost of deposits.
Based on the provided quarterly data, the equity-to-assets ratio has remained remarkably consistent at approximately 0.10 to 0.11 throughout the last ten quarters, suggesting that management is successfully maintaining capital adequacy even as the bank's total asset base has grown by over 27% since 2023Q4.
This stability in the capital base appears to provide a solid foundation for continued lending, though the bank's heavy concentration in commercial real estate remains a potential risk to capital preservation. Investors should monitor whether this capital buffer is sufficient to absorb potential credit volatility if the Michigan industrial cycle experiences a downturn.
The P/E ratio is frequently misapplied to MBWM, as it obscures the impact of volatile provision expenses and the significant influence of the securities portfolio on the bank's reported earnings, which can lead to a distorted view of the bank's core operational profitability.
Because the bank's earnings are sensitive to CECL-driven provision adjustments, the P/E ratio often fails to capture the underlying health of the commercial loan book. Analysts should instead prioritize P/TBV and ROTCE, as these metrics provide a more accurate reflection of the bank's ability to generate value from its tangible capital base.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying MBWM stock.
Mercantile Bank Corporation's current P/E ratio is 10.5x. The historical average is 13.6x. This places it at the 29th percentile of its historical range.
Mercantile Bank Corporation's current EV/EBITDA is 12.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.
Mercantile Bank Corporation's return on equity (ROE) is 13.6%. The historical average is 7.8%.
Based on historical data, Mercantile Bank Corporation is trading at a P/E of 10.5x. This is at the 29th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Mercantile Bank Corporation's current dividend yield is 2.57% with a payout ratio of 27.0%.
Mercantile Bank Corporation has 64.0% gross margin and 27.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Mercantile Bank Corporation's Debt/EBITDA ratio is 7.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.